LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury
products group, recorded revenue of €42.6 billion in 2017, an
increase of 13% over the previous year. Organic revenue growth was
12%. All business groups recorded double-digit organic growth with
the exception of Wines and Spirits, whose growth in the second half
was limited by supply constraints.
With organic revenue growth of 11%, the trend seen since the
beginning of the year continued into the fourth quarter.
Profit from recurring operations reached €8 293 million in 2017,
an increase of 18%. Operating margin reached 19.5%. Group share of
net profit was €5 129 million, representing growth of 29%.
Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH achieved
another record year. The excellent performance, to which all our
businesses contributed, is due in part to the buoyant environment
but above all to the remarkable creative strength of our brands and
their ability to constantly reinvent themselves. Continued
innovation, entrepreneurial spirit and the quest for excellence:
all Maisons continue to assert these core values while maintaining
rigorous execution of their strategies on the ground. In an
environment that remains uncertain, we can count on the appeal of
our brands and the agility of our teams to strengthen, once again
in 2018, our leadership in the universe of high quality
products.”
Key highlights from 2017 include:
- Record revenue and profit from
recurring operations,
- Growth in Europe, the United States and
Asia,
- Good performance for Wines and Spirits
in all regions,
- The success of both iconic and new
products at Louis Vuitton, whose profitability remains at an
exceptional level,
- The acquisition of Christian Dior
Couture, which is showing excellent performance,
- Growth at Fendi and Loro Piana,
- The first year of integration of
Rimowa, leader in luggage excellence,
- Strong momentum at Parfums Christian
Dior, driven by successful product innovations,
- Excellent year for Bvlgari and good
progress at Hublot and TAG Heuer,
- Growth at Sephora, which strengthened
its positions in all its markets and in digital,
- Free cash flow of 4 754 million euros,
up 20%,
- Gearing of 24% at the end of December
2017.
Key figures
Euro millions
2016
2017
% change
Revenue
37 600
42 636
+ 13 %
Profit from recurring operations
7 026
8 293
+ 18 %
Group share of net profit
3 981
5 129
+ 29 %
Free cash flow*
3 974
4 754
+ 20 %
Net financial debt
3 265
7 178
+ 120 %
Total equity
27 903
30 260
+ 8 %
* Before available for sale financial assets and investments,
transactions relating to equity and financing activities
Revenue by business group:
Euro millions
2016
2017
%
variation2017/2016Reported Organic*
Wines & Spirits
4 835
5 084
+ 5 %
+ 7 %
Fashion & Leather Goods
12 775
15 472
+ 21 %
+ 13 %
Perfumes & Cosmetics
4 953
5 560
+ 12 %
+ 14 %
Watches & Jewelry
3 468
3 805
+ 10 %
+ 12 %
Selective Retailing
11 973
13 311
+ 11 %
+ 13 %
Other activities and eliminations
(404)
(596)
-
-
Total LVMH
37 600
42 636
+ 13 %
+ 12 %
* With comparable structure and exchange rates. The currency
effect was -3% and the structural impact was + 4%.
Profit from recurring operations by
business group:
Euro millions
2016
2017
% variation
Wines & Spirits
1 504
1 558
+ 4 %
Fashion & Leather Goods
3 873
4 905
+ 27 %
Perfumes & Cosmetics
551
600
+ 9 %
Watches & Jewelry
458
512
+ 12 %
Selective Retailing
919
1 075
+ 17 %
Other activities and eliminations
(279)
(357)
-
Total LVMH
7 026
8 293
+ 18 %
Wines and Spirits: strong momentum in the United States and
confirmed recovery in China
The Wines and Spirits business group recorded an increase
in organic revenue of 7%. On a reported basis, revenue growth was
5% and profit from recurring operations increased by 4%. Champagnes
grew steadily, with volumes up 4%. With 7.5 million cases of cognac
shipped in 2017, Hennessy's volumes increased by 8%, with
significant growth in China and the United States despite supply
constraints in the second half. All qualities contributed to this
performance. The inauguration of the new Pont Neuf bottling site,
designed to strengthen the production capacity of the Maison, was a
highlight of the last quarter. Colgin Cellars, a Californian estate
producing exceptional wines, and Woodinville whiskey were added to
the business group.
Fashion and Leather Goods: excellent growth across all Louis
Vuitton’s businesses, other brands strengthened their
performance
The Fashion and Leather Goods business group achieved
organic revenue growth of 13% in 2017. On a reported basis, revenue
growth was up 21% and profit from recurring operations increased by
27%. Louis Vuitton continued to demonstrate outstanding creativity
across all of its businesses, maintaining a good balance between
innovations and the strengthening of its iconic product lines. New
products arising from the collaborations with the artist Jeff Koons
as well as the Supreme brand, the launch of the brand’s first smart
watch and the inauguration of the Maison Louis Vuitton Vendôme in
Paris were among the key events of the year. Christian Dior
Couture, whose business became fully consolidated within the Group
in the second half, achieved an excellent performance. The
exhibition at the Musée des Arts Décoratifs in Paris, celebrating
the 70th anniversary of the Maison, was a huge success. Fendi
continued to grow strongly. Loro Piana, Céline, Loewe, Kenzo and
Berluti made good progress. Marc Jacobs strengthened its product
offering and continued its restructuring. Rimowa completed its
first year within the LVMH Group.
Perfumes and Cosmetics: successful innovations and rapid
growth in Asia
The Perfumes & Cosmetics business group recorded
organic revenue growth of 14%. On a reported basis, revenue growth
was 12% and profit from recurring operations increased by 9%.
Parfums Christian Dior grew market share in all regions, driven by
the worldwide success of its fragrance Sauvage and the vitality of
its iconic perfumes J'adore and Miss Dior. The makeup segment grew
strongly, driven by the Rouge Dior and Dior Addict lines. Guerlain
benefited from the successful launch of Mon Guerlain and the
international roll-out of Guerlain Parfumeur boutiques. Parfums
Givenchy had a very good year, thanks in particular to its makeup,
just as Benefit which reinforced its Brow Collection. Fenty Beauty
by Rihanna, launched worldwide exclusively at Sephora, is enjoying
exceptional success.
Watches and Jewelery: excellent year at Bvlgari and further
progress at TAG Heuer
The Watches & Jewelry business group recorded organic
revenue growth of 12%. On a reported basis, revenue growth was 10%
and profit from recurring operations increased by 12%. Bvlgari
achieved an excellent performance and continued to gain market
share thanks to the strength of its iconic lines Serpenti, B.Zero1,
Diva and Octo. Growth was particularly strong in Asia, the United
States and Europe. The inaugurations of the new manufacturing
facility in Valenza and the flagship store on Fifth Avenue in New
York are among the major events of the year. The success of the
Liens and Joséphine collections, and its continued upgrading, drove
Chaumet's growth. In the watch sector, TAG Heuer and Hublot
continued to grow. At TAG Heuer, a new generation of smartwatch
with multiple customization possibilities was launched in 2017.
Selective Retailing: good performance at Sephora and
DFS
The Selective Retailing business group recorded organic
revenue growth of 13%. On a reported basis, revenue growth was 11%
and profit from recurring operations was up 17%. Sephora continued
to gain market share. Its growth was particularly strong in North
America and Asia. A new territory, Germany, was inaugurated, while
Sephora expanded its online presence in Scandinavia, Mexico and the
Middle East. Le Bon Marché has created a new online shopping
experience by launching its digital platform, 24 Sèvres. The year
2017 was a positive turning point for DFS, with better positioned
markets, especially in the second half. The new stores in Cambodia
and Italy continued to grow.
Cautiously confident for 2018
In an environment that remains supportive at the beginning of
the year and despite unfavorable currencies and geopolitical
uncertainties, LVMH is well-equipped to continue its growth
momentum across all business groups in 2018. The Group will
maintain a strategy focused on developing its brands by continuing
to build on strong innovation and investments as well as a constant
quest for quality in their products and their distribution.
Driven by the agility of its teams, their entrepreneurial
spirit, the balance of its different businesses and geographic
diversity, LVMH enters 2018 with cautious confidence, and once
again, sets an objective of increasing its global leadership
position in luxury goods.
Dividend increase of 25%
At the Annual Shareholders’ Meeting on April 12, 2018, LVMH will
propose a dividend of €5 per share, an increase of 25%. An interim
dividend of €1.60 per share was paid on December 7 of last year.
The balance of €3,40 per share will be paid on April 19, 2018.
The LVMH Board met on 25 January 2018 to approve the financial
statements for 2017. Audit procedures have been carried out and the
audit report is being issued.Regulated information related to this
press release, the presentation of annual results and the report
“Financial Documents” are available at www.lvmh.com.
APPENDIX
LVMH – Revenue by business group and by quarter
2017 Revenue (Euro millions)
FY 2017
Wines &Spirits
Fashion &Leather Goods
Perfumes &Cosmetics
Watches &Jewelry
SelectiveRetailing
Other activities& eliminations
Total First Quarter 1 196
3 405 1 395 879 3
154 (145)
9 884 Second Quarter
1 098 3 494 1 275
959 3 126 (122)
9 830 Total First Half 2 294
6 899 2 670
1 838 6 280 (267)
19 714 Third Quarter 1 220
3 939 1 395 951
3 055 (179)
10 381
Nine Months 3 514 10
838 4 065 2 789
9 335 (446)
30 095 Fourth Quarter 1 570 4
634 1 495 1 016 3 976
(150)
12 541 Total 2017
5 084 15 472
5 560 3 805 13
311 (596) 42 636
2017 Revenue (Organic growth versus
same period of 2016)
FY 2017
Wines &Spirits
Fashion &Leather Goods
Perfumes &Cosmetic
Watches &Jewelry
SelectiveRetailing
Other activities& eliminations
Total First Quarter +13%
+15% +12% +11%
+11% -
+13% Second Quarter
+6% +13% +13%
+14% +12% -
+12% Total First Half +10%
+14% +12%
+13% +12% -
+12% Third Quarter +4%
+13% +17% +14% +14%
-
+12% Nine Months
+8% +14%
+14% +13% +12%
- +12% Fourth Quarter
+6% +10% +14%
+9% +14% -
+11% Total 2017 +7%
+13% +14%
+12% +13% -
+12%
2016 Revenue (Euro millions)
FY 2016
Wines &Spirits
Fashion &Leather Goods
Perfumes &Cosmetic
Watches &Jewelry
SelectiveRetailing
Other activities& eliminations
Total First Quarter 1 033
2 965 1 213 774 2
747 (112)
8 620 Second Quarter
1 023 2 920 1 124
835 2 733 (67)
8 568 Total First Half 2 056
5 885 2 337
1 609 5 480 (179)
17 188 Third Quarter 1 225
3 106 1 241 877
2 803 (114) 9 138
Nine
Months 3 281 8 991
3 578 2 486
8 283 (293) 26 326
Fourth Quarter 1 554 3 784
1 375 982 3 690
(111)
11 274 Total 2016
4 835 12 775 4 953
3 468 11 973
(404) 37 600
LVMH
LVMH Moët Hennessy Louis Vuitton is represented in Wines and
Spirits by a portfolio of brands that includes Moët & Chandon,
Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier,
Château d’Yquem, Domaine du Clos des Lambrays, Château Cheval
Blanc, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg, Belvedere,
Woodinville, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des
Andes, Cape Mentelle, Newton, Bodega Numanthia and Ao Yun. Its
Fashion and Leather Goods division includes Louis Vuitton,
Christian Dior Couture, Céline, Loewe, Kenzo, Givenchy, Thomas
Pink, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Nicholas Kirkwood,
Loro Piana and RIMOWA. LVMH is present in the Perfumes and
Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums
Givenchy, Kenzo Parfums, Perfumes Loewe, BeneFit Cosmetics, Make Up
For Ever, Acqua di Parma, Fresh, Kat Von D and Maison Francis
Kurkdjian. LVMH's Watches and Jewelry division comprises Bvlgari,
TAG Heuer, Chaumet, Dior Watches, Zenith, Fred and Hublot. LVMH is
also active in selective retailing as well as in other activities
through DFS, Sephora, Le Bon Marché, La Samaritaine, Royal Van Lent
and Cheval Blanc hotels.
"Certain information included in this release is forward looking
and is subject to important risks and uncertainties and factors
beyond our control or ability to predict, that could cause actual
results to differ materially from those anticipated, projected or
implied. It only reflects our views as of the date of this
presentation. No undue reliance should therefore be based on any
such information, it being also agreed that we undertake no
commitment to amend or update it after the date hereof.”
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version on businesswire.com: http://www.businesswire.com/news/home/20180125006141/en/
LVMHAnalysts and investors:Chris Hollis, + 33
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1.4070.1189orUK:Montfort CommunicationsHugh Morrison /
Charlotte McMullen+44 203.514.0897orItaly:SEC and
PartnersMichele Calcaterra/ Matteo Steinbach+39 02
6249991orUS:KekstJames Fingeroth/Molly Morse/ Anntal
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